Question

A company has determined that its cost in dollars to manufacture x watches is C(x)=34,660+9x. The watches sell for $55 each. Determine
a) The revenue function
b)The profit function
c) The minimum number of watches the company must sell to break even.

Answer 1

a) Revenue simply tells how much money you make (excluding cost) for selling a product. We assume that you receive all the money for each sale, so you make $55 per watch. Revenue is how much money that is made when I make \(x\) watches for $55 per watch. Write this in the form of your function R.
If you're not sure how to write it, consider how much money you make for 1 watch: $55, right?
For 2 watches, you make 55*2. For 3, you make 55*3. The same pattern holds for x!


b) Profit is the amount you are making when you take your costs into account. You have your revenue from the previous example, and then you take out your costs. P = R - C.


c) Break-even is where your costs and your revenues balance out. They become equal. If you set R = C and find the value of x, this will be your answer.

Sorry, I have to sleep in a while. I hope this information will be helpful to you!